Neo Asset Management makes first close of Rs 2,000 Cr secondaries fund

Neo Asset Management has announced the first close of its ₹2,000 crore private equity fund, the Neo Secondaries Fund, after securing ₹750 crore from investors.

Earlier this year, it also achieved the first close of its second flagship private credit fund, the Neo Special Credit Opportunities Fund II (NSCOF II) at ₹2,000 crore. Registered with SEBI, this fund is aiming for a total corpus of ₹5,000 crore.

The SEBI-registered Category II Alternative Investment Fund focuses on buying secondary stakes in unlisted Indian companies that are EBITDA positive and offer clear exit opportunities within two to four years.

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Neo Asset says that launching a late-stage secondary fund helps deliver more predictable returns and gives liquidity to existing investors as older funds approach the end of their lifecycle.

The fund has already backed three companies: disposable hygiene products maker Noble Hygiene, beauty and personal care platform purplle, and Mumbai-based AI company Fractal Analytics. 

Additionally, it has entered into a multi-asset deal with an Indian venture capital firm, though the firm’s name has not been disclosed.

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“Secondaries have outperformed in the US. It has outperformed their public markets by up to 7% per annum. In India, secondaries outperform public markets by 6-8% per annum, that is a healthy outperformance,” said cofounder and chief executive Hemant Daga. “These funds are of relatively shorter duration, unlike a traditional private equity fund.”

About Neo 

Founded in 2021 by Nitin Jain—former CEO of Edelweiss Financial Services—along with four of his Edelweiss colleagues, Neo provides financial advisory services to over 1,200 clients, spanning HNIs, ultra-HNIs and multi-family offices.

In August 2023, Neo secured ₹400 Cr in equity funding from MUFG Bank and New York-based Euclidean Capital. Peak XV Partners, which had earlier invested $35 Mn in October 2023, also participated in this round.